April 2 (Bloomberg) -- Corn climbed after plunging the most in 24 years yesterday, while wheat and soybeans advanced on speculation the slump in the past two sessions may attract investors, feed millers and biofuel producers.
Corn for May delivery rose as much as 1.4 percent to $6.51 a bushel on the Chicago Board of Trade and traded at $6.495 by 5:50 a.m. local time on volume that was more than double the 100-day average for the time of day. Futures tumbled into a bear market yesterday, dropping 13 percent in two days and falling 23 percent from last year’s closing high in August.
"There’s some buying from consumers and end-users at these levels," Michael Pitts, a commodity sales director at National Australia Bank Ltd., said by phone from Sydney today. The two- day plunge "will definitely attract import demand across all grains," he said.
Wheat for May delivery rose 1.2 percent to $6.7175 a bushel in Chicago, while soybeans for delivery in the same month gained 0.8 percent to $14.0125 a bushel. Milling wheat for delivery in May traded on NYSE Liffe in Paris was 0.1 percent higher at 239 euros ($306.85) a metric ton.
The amount of corn inspected for export at U.S. ports rose for a third week, climbing 11 percent to 19.1 million bushels in the five days ended March 28, the U.S. Department of Agriculture said yesterday. Wheat export inspections climbed 24 percent, USDA data show.
The recent drop in corn prices improved margins for producers of ethanol, a biofuel, according to Jason Ward, an analyst at Northstar Commodity Investments LLC in Minneapolis.
--With assistance from Mario Parker in Chicago and Rudy Ruitenberg in Paris. Editors: John Deane, Sharon Lindores
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